As a new parent, there are countless tasks to handle and decisions to make, all of which are in the best interest of your child. One of the most crucial is ensuring that your child is protected financially in the event of your unexpected passing. Getting covered with life insurance is a way for parents to ensure their child is protected financially should this happen and we’ll talk about this advice for new parents to help you make the best decision for your family.
Step 1:
The first step new dads or moms must take is to determine how much life insurance they require. This may be determined by assessing your family’s current and expected future expenses. The amount of life insurance you require will typically be calculated based on your household’s overall income, savings, debts, and future expenses such as college or child care costs.
Step 2:
The next step is to determine which type of life insurance policy is the best fit for your family. Term life insurance is the most cost-effective type and provides coverage for specific periods, such as ten years or twenty years. Whole life insurance provides coverage for a lifetime and builds up a savings account known as cash value. Lastly, universal life insurance offers a flexible premium and death benefit, making it a great option for those that need more control over their policy.
Importance of Insurance Brokers:
Once you decide which type of life insurance policy is best suited for your needs, it is important to compare quotes from different providers to ensure you are getting the best coverage at the best price. This is where an insurance broker comes in because he/she has access to multiple companies. Of course, everyone is different and your insurance broker will be able to help you determine whether or not you qualify for certain coverage as well.
Don’t Wait To Get Coverage:
Buy your policy early…don’t wait! A lot of people get confused and think that life insurance is determined by savings or assets or even their credit rating. But the major categories that underwriters are focusing on are age and the results of a medical evaluation. Credit rating is rarely a factor. Savings and assets are not a part of the application process at all!
Understand Your Policy:
Before finalizing your life insurance policy, be sure to understand any exclusions or limitations. Common exclusions include deaths caused by suicide or a result of illegal behaviors. It’s important to be aware of these exclusions prior to purchasing a policy, as you don’t want to be caught off guard with no coverage when you need it most.
Conclusion:
As a new parent, it’s important to prioritize securing your child’s future, which includes ensuring they are protected financially if the unexpected occurs. Life insurance provides a way for you to do just that. To ensure your family is protected properly, determine how much coverage you’ll need, choose the policy that is the best fit for your family, compare policies with your life insurance broker and understand the policy’s exclusions prior to purchasing. With these tips in mind, you can gain peace of mind knowing that your child is protected if anything happens to you!
Contact an insurance broker here for any questions and get covered today!